EURUSD: Halts Declines, Targets The 1.4844 level

EURUSD - An early extension of the pair's corrective declines was rebuffed Thursday pushing it strongly higher and wiping out its Wednesday losses to close higher at 1.4837. Although its mentioned nearer term weakness has halted, EUR must build on its Thursday strength and break and hold above its strong resistance residing at the 1.4844 level, its Sept 21'09 high to signal further upside gains towards the 1.5000 level. A breach of the latter will expose its YTD high at 1.5062 with a loss of there triggering the resumption of its medium term uptrend. On the other hand, we remain suspicious of its current recovery if it continues to trade and hold below the 1.4844 level. In such a case, its intra day low at 1.4682 will be targeted if fails to head higher with a violation of there turning attention to its LT trendlineat 1.4556. We envisage this level if seen should cap declines and push the pair back up. On the whole, having halted its corrective declines, risk now remains to the upside but EUR must break and hold above the 1.4844 level to prevent threats of returning to the 1.4682 level.

width=402